Paramter values for Bayestian estimation?

Dear all,

I am doing Bayesian estimation in Dynare. As I read on the guideline of the Dynare manual, they do not mention listing the values of parameters when doing estimation.
And in these slides, WDH also says that only need to declare value of the parameters that are not ESTIMATED.

In my case, if I put values of all parameters (including those i plan to estimate - i just put the prior guess), then when i run estimation, it works well.
But, if I do not declare values of the parameters which is gonna estimated, I got the following errors:

Error using print_info (line 90)
The steady state contains NaN or Inf
Error in steady (line 104)
print_info(info,options_.noprint, options_);
Error in BayEst (line 338)
Error in dynare (line 235)
evalin(‘base’,fname) ;

Could anyone plz explain to me do I actually need to declare values of all parameters for estimation?

Thank you,

Without having the mod file, my best guess is that you are calling the steady command before the estimation command. This cannot work if you do dot have values for all the model’s parameters. If you use another command before estimation, you must calibrate all the parameters. Otherwise you do not need to calibrate the estimated parameters.


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Yes, you’re right. I put the command steady state before estimation.